Renting can be a more flexible and affordable option, while there are also many benefits to owning a home. Depending on the phase of your life and what is important to you, both are viable options.
There is a new law that came into effect on January 1st, 2023, along with the Foreign Buyer Ban. This one focuses on trying to limit house flipping or speculation, by taxing the gains on any home that sells within 12 months of the purchase.
This new law requires all sellers, who have not owned the home for longer than 12 months, to claim the gains on the sale as business income.
This is different from previous rules regarding income properties as the gains on those have to be claimed as Capital Gains. Considering home sellers have always been able to sell their primary residence at any time without being taxed, we consider this to be a significant change.
There is a new law that came into effect on January 1st, 2023, along with the Foreign Buyer Ban. This one focuses on trying to limit house flipping or speculation, by taxing the gains on any home that sells within 12 months of the purchase.
This new law requires all sellers, who have not owned the home for longer than 12 months, to claim the gains on the sale as business income.
This is different from previous rules regarding income properties as the gains on those have to be claimed as Capital Gains. Considering home sellers have always been able to sell their primary residence at any time without being taxed, we consider this to be a significant change.
There are some exceptions to the rule:
Death
Serious illness or disability
Birth of a child
Job loss or relocation
Divorce/separation
Insolvency
Threat to personal safety
Property destruction